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Trustees approve resolution to grant authority for legal settlements

October 26, 2012

Trustees approve resolution to grant authority for legal settlements

UNIVERSITY PARK, Pa. -- Penn State's Board of Trustees today (Oct. 26) in a special meeting voted unanimously to authorize a subcommittee of the Board to approve possible settlements of claims made against the University related to the crimes of former assistant coach Jerry Sandusky.

This measure provides the Subcommittee on Legal -- an arm of the board’s Committee on Legal and Compliance -- the authority to approve settlements that may be reached related to claims against the University by individuals alleging that Penn State is liable for injuries suffered in connection with sexual abuse by Sandusky. The retired assistant coach was convicted on June 22 of the abuse of 10 boys and sentenced to 30 to 60 years in prison.

"Today's action takes one more step toward the resolution of claims from the victims of Mr. Sandusky," said Penn State President Rodney Erickson. "As we have previously said, the University intends to deal with these individuals in a fair and expeditious manner, with due regard to their privacy."

Erickson has previously said the University would reach out to victims to resolve claims against the University, and the law firm of Feinberg Rozen LLP was retained to help facilitate any settlements. Feinberg Rozen has received national recognition for helping to resolve mass litigation arising out of the Sept. 11, 2001, terrorist attacks; the 2010 BP oil spill in the Gulf of Mexico; and the Virginia Tech shootings in 2007. Through the action by the Board, the subcommittee will be able to provide oversight and enable a process where the University may privately, expeditiously and fairly resolve claims against it.

Kenneth R. Feinberg and Michael K. Rozen said they have reached out to begin settlement talks with at least 20 men who accuse Sandusky of sexual abuse. The claims include eight people who testified for the prosecution of Sandusky, three others who have filed lawsuits, and at least nine others who have come forward through counsel, either privately or publicly, with allegations of abuse.